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Age-induced decision shrinkage, another avenue to repeat purchase: the example of new automobiles

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Listed:
  • LAURENT, Gilles
  • LAMBERT-PANDRAUD, Raphaelle

    (Negocia, Paris)

Abstract

The literature from psychology and gerontology suggests that older persons have reduced cognitive abilities, and an increased risk aversion. On this basis, we predict that their decision process will be shrunk, in three manners: a smaller consideration set, a focus on the previous brand (leading to repeat purchases), a privileged status given to other ancient brands. In a survey approach, we test these predictions on a large sample of recent buyers of new automobiles. The results confirm the prediction: A shrinkage of the decision process appears after sixty, and is markedly stronger after seventy-five, two limits suggested by the literature.

Suggested Citation

  • LAURENT, Gilles & LAMBERT-PANDRAUD, Raphaelle, 2002. "Age-induced decision shrinkage, another avenue to repeat purchase: the example of new automobiles," HEC Research Papers Series 748, HEC Paris.
    • Handle: RePEc:ebg:heccah:0748
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    age; consumer behavior; purchase process; brand loyalty; cautiousness;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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